It doesn’t matter on the type of business that you have or the specific industry that you work in, it’s time to start thinking about making your tax digital. The government has recently launched the Making Tax Digital initiative and is set to make digital tax a lot simpler for a number of businesses. The MTD initiative aims to help businesses manage their taxes efficiently and effectively, as well as helping them to keep on top of their other financial business affairs.
How Will Making Tax Digital Affect Your Business?
For a while now, HMRC has been taking steps towards becoming one of the most advanced tax departments in the world and MTD is a big part of that. It doesn’t matter on the size of the business or what you do, MTD is transforming the way that things are done from start to finish. The goal is to make tax administration more effective, more efficient and a lot more straightforward. It is hoped that MTD will make it easier for businesses to get their taxes right and easier to stay on top of their finances.
In order to benefit from MTD, businesses will need to make some changes. From their first VAT period starting after 1st April 2019, businesses registered for VAT with a taxable turnover above the £85,000 registration threshold will need to keep VAT records digitally. They will also need to file their VAT returns using software that is compatible with MTD. Businesses with a taxable turnover below the VAT threshold do not need to implement MTD, but they are able to do so if they want to.
Accountants in Birmingham
With fundamental changes being made to the way that tax is done, it’s easy to see why some businesses may be hesitant. If you have been doing your taxes a certain way for a very long time and find that it’s been working well, embracing the MTD initiative could seem like a daunting and stressful task. However, it really doesn’t need to be. Thanks to our accountants in Birmingham, everything can be done smoothly and in no time at all. You will probably find that implementing MTD is a lot simpler than you first thought, especially with a team of experts on hand to help. To find out more about switching to MTD and how it will affect your business, get in touch with the Engage Accountancy team.